Here Are 3 Things To Know About Markets Right Now
- Chinese President Xi Jinping pledged a more open China and promised a decrease on tariffs on imported cars, carmakers including Daimler AG (DMLRY) and BMW AG (BMWYY) rose in Germany while Ford Motor Co. (F) - Get Report , General Motors Co. (GM) - Get Report and Tesla Inc. (TSLA) - Get Report rose in Tuesday pre-market trading.
- Dow futures are pointing to a more than 300-point jump at open after Xi's address.
- Oil rose on Tuesday after President Trump said the U.S. will decide "very quickly" about whether or not to strike Syria in response to a possible chemical attack, West Texas Intermediate crude rose 1.34% to $64.27 a barrel.
Wall Street futures surged on Tuesday, April 10, after Chinese President Xi Jinping pledged to open more sectors but warned against a "Cold War mentality" amid a trade dispute with the U.S.
In a Tuesday speech at the Boao Forum for Asia, an event hosted by the Chinese government, Xi spoke of increasing imports, lowering foreign-ownership limits on manufacturing and expanding protection to intellectual property.
Xi said that the Chinese government was seeking to "broaden market access" for financial services companies, he also pledged to reduce the limits on foreign investment in the automotive, shipbuilding and aviation sectors.
Xi pledged to significantly lower tariffs on imported vehicles, which came hours after President Trump on Monday tweeted about China's 25% tariff on cars from the U.S.
General Motors Co. (GM) - Get Report rose 3.36% in premarket trading and Ford Motor Co. (F) - Get Report was marked 2.04% higher. Tesla Inc. (TSLA) - Get Report will also benefit from a reduction in tariffs, the maker of electric cars saw shares jump 3.10% in premarket trading.
Facebook Inc. (FB) - Get Report shares were up 0.93% in the premarket ahead of CEO Mark Zuckerberg's testimony before Congress on Tuesday. In a statement ahead of the hearing Zuckerberg admitted he didn't realize how the data of the social network's users could be abused. "We didn't take a broad enough view of our responsibility, and that was a big mistake. It was my mistake, and I'm sorry," he said. Shares in the company are down 10% since the beginning of the year.
Nike Inc. (NKE) - Get Report shares were marked 1.3% higher in premarket trading Tuesday after it said it had acquired Tel Aviv-based Intervix, a computer vision firm. "The acquisition of Invertex will deepen our bench of digital talent and further our capabilities in computer vision and artificial intelligence as we create the most compelling Nike consumer experience at every touch point," Nike Chief Digital Officer, Adam Sussman, said. Terms of the deal were not disclosed.
Shares in electronic payment company VeriFone Systems Inc. (PAY) popped more than 50%, after a private equity firm-led investor group said it would buy the company in a $3.4 billion deal.
Nvidia Corp. (NVDA) - Get Report shares were rising 3.92% to $223.85 in premarket trading on Tuesday after Morgan Stanley analyst Joseph Moore upgraded the stock to "overweight" from "equal weight" and kept his $258 price target.
European opened in positive territory on Tuesday. London's FTSE 100 rose 0.66% to 7,241, France's Cac 40 gained 0.56% to 5,293 and Germany's Dax was marked 0.80% higher to 12,376.
Bayer AG (BAYRY) also rose 4.13% to €97.29 on reports that its mega-merger with Monsanto Co. (MON) would likely be approved by the Department of Justice. The Wall Street Journal reported that the companies have agreed additional asset sales.
In London, Glencore plc (GLNCY) shares gained 2.96% after the commodity trader and miner began cutting ties with Russia's United Co. Rusal, an aluminium producer hit by U.S. sanctions. Glencore's CEO Ivan Glasenberg said he would step down from Rusal board and the company said it would not go ahead with a deal to swap its 8.75% stake for a holding in En+.
French luxury house LVMH SE (LVMUY) stock surged 3.55% in Paris, changing hands at €278.8 after it reported better-than-expected first quarter sales. Organic revenues rose by 13% in the first three months of the year, driven by its fashion and leather goods division.
Xi's speech came amid a growing trade dispute between the U.S. and China, which saw each country last week proposing to slap tariffs on billions of dollars of imports.
"Human society is facing a major choice to open or close, to go forward or backward," Xi said. "In today's world, the trend of peace and cooperation is moving forward and the Cold War mentality and zero-sum-game thinking are outdated."
Asian markets gained after Xi's address with China's Shanghai Composite Index gaining 1.93% and Hong Kong's Hang Seng rose 1.65%. Japan's Nikkei was up 0.54% and the Topix gained 0.35%.
The yield on 10-year Treasuries rose three basis points to 2.80%.
Oil rose on Tuesday after President Trump said the U.S. will decide "very quickly" about whether or not to strike Syria in response to a possible chemical attack. West Texas Intermediate crude rose 2.10% to $64.75 a barrel and Brent Crude was up 2.07% to $70.07 a barrel.
Stocks rose Monday following tweets from President Donald Trump that appeared to indicate the U.S. was softening its approach in its trade battle with China.
The Dow Jones rose 46 points, or 0.19%. The S&P 500 gained 0.33% and the Nasdaq was up 0.51% as tech stocks were a standout Monday.
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